With the global consciousness of climate change, renewable energy systems are prioritized over the conventional energy systems. The deep injection of renewables into the power systems is creating several challenges to the grid due to wide variations in their output power depending on the time of the day, weather etc. Of these challenges, frequency change plays a vital role in maintaining the power quality. This paper presents a novel sliding mode controller with non-linear disturbance observer to effectively mitigate the wide changes in the frequency. A sliding mode surface based on estimated disturbance along with states is designed. A sliding mode control law is proposed to compensate disturbances including variations in renewables, load and parameters under mismatched uncertainties. The proposed observer based controller is tested for three area multi-machine power system in MATLAB/Simulink. The simulated results proved to alleviate the frequency variations effectively compared to the conventional controllers.